Earnings Per Share

12 Months Ended

Dec. 31, 2020

(11)	Earnings Per Share

The Company computes earnings per share in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share (“ASC 260”). TrustCo adopted FASB Staff Position on Emerging Issues Task Force 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities, as codified in FASB ASC 260-10 (“ASC 260-10”), which clarified that unvested share-based payment awards that contain nonforfeitable rights to receive dividends or divided equivalents (whether paid or unpaid) are participating securities, and thus, should be included in the two-class method of computing earnings per share (“EPS”). Participating securities under this statement include the unvested employees’ and directors’ restricted stock awards with time-based vesting, which receive nonforfeitable dividend payments. At December 31, 2020, 2019 and 2018, the Company no longer has unvested awards that would be considered participating securities.

A reconciliation of the component parts of earnings per share for 2020, 2019 and 2018 follows:

(dollars in thousands, except per share data)	For the years ended December 31
	2020		2019		2018

Net income	$	52,452		57,840		61,445
Weighted average common shares		96,506		96,849		96,505

Effect of dilutive common stock options		11		78		141

Weighted average common shares including potential dilutive shares		96,517		96,927		96,646

Basic EPS	$	0.544		0.597		0.637

Diluted EPS	$	0.543		0.597		0.636

For the years ended December 31, 2020 and 2019, there were 452 thousand and -0-, respectively, of antidilutive stock options excluded from diluted earnings per share. The stock options are antidilutive because the strike price is greater than the average fair value of the Company’s common stock for the periods presented.